Introduction

India's journey towards globalization has been multifaceted, encompassing economic liberalization, technological advancement, and strategic international partnerships. A pivotal aspect of this trajectory is India's involvement with BRICS (Brazil, Russia, India, China, South Africa), a bloc representing major emerging economies. This article explores India's role in BRICS, its impact on global trade, and the acceptance of the Indian Rupee (INR) in international trade.

BRICS: A Platform for Emerging Economies

Expansion and Influence

BRICS was originally formed to enhance cooperation among five major emerging economies. In 2024, the group expanded to include Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE), transforming it into BRICS+ oai_citation:1,An Evolving BRICS and the Shifting World Order | BCG oai_citation:2,India’s Trade and Development With BRICS: Analysis and Opportunities. This expansion underscores BRICS' growing influence, as it now accounts for nearly half of the world's population and a significant portion of global GDP and trade.

Economic Cooperation and Trade

India has leveraged its position in BRICS to bolster economic cooperation with member countries. Trade between India and other BRICS nations has seen substantial growth. For instance, bilateral trade with Brazil includes significant exchanges of refined petroleum, pesticides, and medicaments from India, and crude petroleum, soybean oil, and gold from Brazil oai_citation:3,India’s Trade and Development With BRICS: Analysis and Opportunities. Similarly, trade with South Africa involves the exchange of refined petroleum, autos, and special purpose ships for gold, coal briquettes, and raw copper oai_citation:4,India’s Trade and Development With BRICS: Analysis and Opportunities.

Acceptance of INR in Foreign Trade

De-Dollarization and Financial Autonomy

One of the significant shifts within BRICS is the move towards de-dollarization. The group has discussed creating a new global reserve currency, potentially reducing reliance on the US dollar. This initiative aims to facilitate smoother trade relations among BRICS nations and offer an alternative to Western-dominated financial systems oai_citation:5,How Would a New BRICS Currency Affect the US Dollar? (Updated 2024) | Nasdaq.

India has been proactive in promoting the use of INR in international trade. This move is part of a broader strategy to increase financial autonomy and reduce dependency on the US dollar. The adoption of INR for bilateral trade, especially with countries like Russia and Iran, highlights this effort oai_citation:6,How Would a New BRICS Currency Affect the US Dollar? (Updated 2024) | Nasdaq.

Strategic Implications and Future Prospects

Institutional Developments

The BRICS+ nations are not only focusing on trade but also on building institutions that can support a multipolar world order. These institutions aim to address energy trade, international finance, supply chains, and technological research, providing a counterbalance to Western-led entities like the World Bank and the International Monetary Fund oai_citation:7,An Evolving BRICS and the Shifting World Order | BCG oai_citation:8,On 1 January 2024, the World’s Centre of Gravity Will Shift: The Thirty-Fifth Newsletter (2023).

Challenges and Opportunities

Despite its progress, BRICS faces challenges such as internal differences, geopolitical tensions, and coordination issues. However, the bloc's commitment to reforming global governance and promoting a multipolar world order presents significant opportunities for its members. For India, this means enhanced economic cooperation, increased trade opportunities, and a stronger voice in international affairs oai_citation:9,India’s Trade and Development With BRICS: Analysis and Opportunities oai_citation:10,How Would a New BRICS Currency Affect the US Dollar? (Updated 2024) | Nasdaq.

Conclusion

India's globalization journey is significantly intertwined with its role in BRICS. By fostering economic cooperation, promoting the use of INR in trade, and contributing to the development of new international institutions, India is carving out a significant role on the global stage. As BRICS continues to evolve, India's strategic engagement with the bloc will be crucial in shaping a more balanced and multipolar world order.